The express giant added that its Asian business is currently performing well, but there were no guarantees how long this will last.

“Business demand in Asia remains elevated due to backlogs caused by the Covid-19 pandemic and the impact of responsive measures in Asia in early calendar 2020, as well as decreases in cargo capacity on passenger airlines,” FedEx said.

“However, due to weakening economic conditions in Europe and the United States, and resulting decreases in demand for goods manufactured in Asia, there are no assurances that these increased levels of demand will be sustainable.

Meanwhile, chief executive Fred Smith has cut his base salary by over 90% for the next six months.